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A ray of sunshine in an otherwise snowy day

March 28th, 2008 at 04:32 pm

No credit can I claim for this, but I read online that my mortgagor bank has had a profit over the last fiscal year. Yes, a residential lending institution and bank showed a profit, in the United States, headquartered in a city where many recent mortgages are of the toxic variety.

Losses from residential and commercial construction loans went up, but because the bank is privately owned, there's no urgency in hiking up profits by doing risky mortgages.


Posted in victories | 3 Comments »

3 Responses to “A ray of sunshine in an otherwise snowy day”

  1. Joan.of.the.Arch Says:
    March 28th, 2008 at 08:02 pm

    The article says that part of their strength is being 64% family owned, 20% employee owned so that they do not have the same frenzied pressures to act that other contracted to a company that survived the dotcom bust for a similar reason. I've really come to appreciate some of the advantages of smaller businesses and smaller, cleaner ownership. The company I worked for beat out a number of publishing titans with internet staff 200 times (and more) what ours was.

    Anyway, I can see some advantage to having my mortgage with a local institution. Mine has been sold 4 times in 15 years. I think it may be at a stable place now, Wells Fargo, which may come to eat Seattle's bad-boy Washington Mutual for breakfast any day now.

    Looks to me like one result of all the financial troubles will be that lenders just get bigger and bigger, and more remote to us little folks. Can you imagine a monopoly mortgage company? Yiiii!

  2. PauletteGoddard Says:
    March 28th, 2008 at 09:28 pm

    I was warned in 2003 that chances were higher my mortgage would be sold. Four times, eh? Was one bank the Mark Twain Bank? Why do the financial institutions have to do so much gobbling here? Is there any connection between gobbling of smaller banks and cyclical savings and thrifts crises?

  3. Joan.of.the.Arch Says:
    March 29th, 2008 at 10:41 am

    No, no Mark Twain. Really I understand little of this stuff. I'm learning at about the same rate that it seems to affect me. I had initially used a local non-bank lender, Gershwin Investments. The first place it was sold to, somehwere in Florida, was difficult to communicate with....You know what? At the end of February when I attended my friends' closing on their house, the lender told them that the NEXT week their loan would be sold! He even told them who the buyer would be, Citigroup. Good grief.

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